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Unstoppable Event Will Send Commodity Prices Soaring…

Downtrend stacks coins,on the financial stock charts as background. Selective focus

It has been a bad few years for resources stocks.

That’s because it has been a bad few years for sources prices.

We’ll show you a chart in a moment to prove this.

So, is there any hope for the time sector?

Is there anything that can provide resources prices and resources stocks a boost?

Our resident resources expert, Jason Stevenson, believes there is. We’ll explain precisely what right now…

There’s no doubt that Jason offers controversial views.

That was evident at our Editorial Roundtable fourteen days ago.

That’s where we asked each of our editors to present their own key theme for 2016.

Jason had been one step ahead. He had currently presented his key concept for 2016 in a recent issue of Resource Speculator.

If you don’t yet sign up for Resource Speculator, you can catch a special model of that issue here.

The commodity bounceback is set to begin

Earlier we pointed out how it had been a bad few years for resources. This graph proves that:


Source: Bloomberg

The chart is of the Thomson Reuters/CoreCommodity CRB Commodity Index.

This index is down over 59% since it actually peaked in 2008.

It’s no chance that the commodity rebound arrived line with the many stimulation programs from 2009 onwards.

And while those stimulus programs didn’t help all commodities to hit a record high, this did help to elevate many commodity prices.

But then the stimulus programs slowed and stopped…and so did any wish of further commodity price rises. Since the US Fed cut back on its bond buying program at the end of 2014, commodity prices have slumped.

So what’s subsequent for commodities? If the Given really is intent on raising rates of interest, that will mean the end of increasing prices, right?

Could be. However according to Jason, there’s another catalyst that will soon trigger commodity prices to rise much higher. And it could happen soon…

Readying for an oil war

There aren’t many who like the word ‘war’. Except of course, for those in the business of battle. That includes governments and their geopolitics.

As Jerr explains in his special statement:

For many years, the US was a good ‘oil importer’ and heavily relied on inexpensive Middle Eastern oil.

Now, getting become an ‘oil producer’, the US geopolitical goal is to isolate Russia — it is the only country (bar The far east) that really stands up to US international meddling.

The US isn’t used to becoming told what to do. It can’t handle the fact that it’s a declining kingdom — economically, geopolitically, financially, and culturally.

As such, you can expect the US to help keep doing whatever it takes to apply its authority over Spain.

This means, hitting Russia exactly where it hurts — cutting off its oil and gas money.

Russia is the biggest supplier of natural gas to Western Europe. This grants the county a lot of power. If necessary, it can turn off the gas or raise prices, because it has done during northern winter season in years past.

The US doesn’t such as this power play, and to neutralise Russia’s influence over Europe, the US has backed the Qatar-Turkey pipeline (Saudi Arabia).

Russia clearly has an interest to make sure this doesn’t happen. What’s more, it retains long term exploration and development rights to a large part of Syria’s offshore waters.

If Russia will find gas and oil in the region AND have impact over a pipeline to Europe, it can gain more control over all the gas that flows into Europe.

There is a lot at stake here — wealth, prestige and energy — for a lot of historically stubborn and confrontational nations.

Geopolitical tensions are warming up.

And all the dangerous ingredients for any Middle Eastern proxy-war are in place.

According in order to Jason, if real war breaks out in the Middle East, commodity prices, and one specific commodity price (it’s not gold) will soar.

And although there are lots of stocks that will benefit from which price surge, Jason has snagged one that he believes could do better than any other.

As we say, Jason isn’t afraid to say what he thinks. This could be the most timely and most essential report he’s written up to now. We urge you to take a look now. Go here.

Regards,

Kris